MR. NASH’S POLICY BLAMED FOR PRICE INFLATION

Gisborne Herald, Volume LXXV, Issue 22823, 18 December 1948, Page 4

MR. NASH’S POLICY BLAMED FOR PRICE INFLATION

(P.A.) CHRISTCHURCH. Dec. 18. “As usual, the Minister of Finance, Mr. W. Nash, runs away from the •

charges I laid against the Government of being responsible for the present steadily-rising prices of goods because of his inflationary financial policy,” said the Leader of the Opposition, Mr. S. G. Holland, last evening, commenting on Mr. Nash’s reply to the charges against the Government made by Mr. Holland on Wednesday evening. “Mr. Nash endeavours to escape from his predicament by leaning on the opinions of an orthodox economist,” said Mr. Holland. “If the Minister had acted upon the advice of the self-same economist New Zealand would not be facing many of its present financial difficulties.

“That the Government is responsible for the present spread of inflation was proved by his own colleague, the Minister of Supply, Mr. A. H. Nordmeyer, when he gave this information to the Federation of Labour conference in Dunedin earlier this year. “In 1933 the gap between the people's income and the goods produced was £48.000,000. In 1946 the gap was £159,000,000, an increase of £111,00,000.

“There could be no stronger or more convincing condemnation of the Government’s financial policy than Mr. Nordmeyer's own figures. “Mr. Nash attempts to dispose of other points I have raised by extending his Christmas greetings and I would like to say to him, in reciprocating that message, that nothing Mr. Nash could do would make me happier than the knowledge that he had made a New Year resolution that he would deal adequately with the problem of the inflationary spiral and thus ensure the happy new year that we all desire for this country of ours,” concluded Mr. Holland.